ETF Macro Insights - January, 2025

ETF Stats at Large

• ETF assets have surpassed $10 trillion in total assets. Equites represent the lion share with over $8 trillion. Fixed Income continues to rapidly grow and has over $1.8 trillion.
• Over 700 new ETFs launched in 2024, with over 500 of those under the active label.  Astoria believes active ETFs will gain in popularity if the market rotation away from the Mag 7 gains momentum over a multi year period.
• Crypto ETFs exploded last year.  Net flows were over $40 bln in year 1.  With a pro crypto administration and large wirehouses who have yet to approve the product, its easy to see more inflows in Year 2 than Year 1.
• Watch ETF leverage products. With amply liquidity sloshing around the system and a bull market that continues to run, keep an eye on this space.
• According to Todd Sohn, derivatives based strategies exploded in both product number and assets in 2024. There were almost 300 new funds that use the derivatives market to some capacity. Levered single stock funds, option writing, and structured outcomes to name a few areas.
• Active Fixed Income ETFs ‘quietly’ took in $100 bln of assets.  Astoria believes there are large systemic risk with the longer term debt cycle and one needs to be tactical in fixed income.  We believe active fixed income could have a big year from a performance and asset gathering standpoint.

Read more in the January update of Astoria's ETF Macro Insights. https://www.astoriaadvisors.com/single-post/etf-macro-insights-january-2025